Q–We’ve been trying to sell our home for almost a year. At first, we tried for two months to sell it ourselves. That didn’t work. We then listed it with a good Realtor for six months. She told us the market was “slow” and that was the reason our home didn’t sell. Then we renewed her listing for 90 days. We received two offers, but they were far too low. Next, we signed a listing with a “hot shot” Realtor who had a mile-long list of homes he’d sold in our town. But we were one of his 50 listings so we didn’t get much of his time.
We took our home off the market for the holidays. Now we’re ready to get it sold. It’s a very attractive residence, in excellent condition, with many amenities. What should we do to get our home sold?
A–When a home has been for sale almost a year, there is usually just one reason it hasn’t sold. That reason is the house is overpriced.
Since you’re starting fresh, please sell your home correctly. Start by interviewing at least three successful realty agents. Each agent will give you his or her listing presentation. It should include a written CMA (comparative market analysis). This form shows recent sales prices of comparable nearby homes and the asking price of neighborhood homes now listed for sale (your competition).
Each agent you interview will give you an estimate of your home’s sales price (market value) and a recommended asking price. Listen carefully to these expert opinions. These agents are in touch with the current marketplace.
If you sincerely want to get your home sold, sign a 90-day listing with the best agent. But before signing, be sure to phone his/her references of recent sellers to ask, “Were you in any way unhappy with your agent and would you list your home for sale with the same agent again?”
If you don’t overprice your home and you select the best agent for a 90-day listing, your home should sell during the busy spring home-buying season.
Q–I sold my home last September and carried back a $14,500 second mortgage for the buyer. She made the October and November payments, both late. The December payment came on December 20. I haven’t received the January payment yet. How long should I wait?
A–If it’s any comfort, I have borrowers like that, too. I find if I give them any slack, they’ll take advantage of me. I’m usually a nice guy, but you know what happens to nice guys.
I suggest you write or phone the borrower, politely reminding her the monthly mortgage payment is due on the first of each month. Another reminder is appropriate if you don’t have it by the 15th of the month. If you haven’t received the payment by the first of the following month, it’s time to start foreclosure when the payment is 30 days late.
Most borrowers will quickly cure their default, including the late charge and extra fees. They soon learn their lesson: It’s very expensive to be late with mortgage payments. Your attorney can give you further details.
Q–My wife and I plan to sell our home in 1997 and move to Costa Rica, where we will probably buy a home. Although we are eligible for the “over 55 rule” $125,000 home sale tax exemption, our problem is our sale profit will be close to $200,000. Is there any way we can avoid tax on our entire profit?
A–Yes. Just subtract your $125,000 “over 55 rule” exemption from your home’s adjusted or net sales price. Then buy a replacement principal residence, even in a foreign country, costing at least as much as this “revised adjusted sales price” to defer tax on the remaining $75,000 of your sale profit.
Further details are in my new special report “If You’re Over 55, How to Claim Your $125,000 Home Sale Tax Exemption, Or More” available for $4 from Robert Bruss, 251 Park Rd., Burlingame, Calif. 94010.
Q–We live in an “owner’s apartment” in a combination apartment and commercial store building that we’re selling. Our reason for the sale is the stairs to our second floor apartment (no elevator) are too much for my wife. She is 68 and I am 74. We received a very good offer from an adjoining supermarket, which wants to buy our building to tear it down for parking.
We’ve lived here over 35 years and raised our two sons here, but it’s time to move on. We’ll be moving to a wonderful new life-care retirement complex, although we don’t think we’re old enough for it. Can we use that “over 55 rule” $125,000 tax exemption in a situation like this?
A–Yes. However, the “over 55 rule” of Internal Revenue Code 121 only applies to your profit from the sale of your owner’s apartment. It does not apply to the profit on the sale of the rental portion of the building.
You’ll need to allocate the sales price between the value of your apartment and the value of the remainder of the building. Then your profit will be apportioned between the residence and rental portions.
PLEASE NOTE: Real estate laws vary from place to place. Be sure to check the laws of your state and municipality before making decisions on real estate matters.
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Write to Robert Bruss at Tribune Media Services, 435 N. Michigan Ave., Chicago, Ill. 60611.
